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A worker inquired whether payments received following a voluntary resignation incentivised through mutual agreement were exempt or eligible for a tax reduction. The DGT ruled that no exemption applies and the 30% reduction cannot be used because the payments are not attributed to a single tax period.
This ruling clarifies that settlements reached via mutual agreement do not qualify for the tax reduction typically applied to irregular income, as they do not meet the requirement of being attributed to a single tax year.
The tax team reviews your specific situation.
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